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July 20, 2008 (LBO) – Sri Lanka Telecom’s mobile subsidiary wants its licensing conditions relaxed so it could combine phone tariffs with its fixed line parent, its chief executive said. This will enable the firm to achieve higher scale advantages to compete in a market where new technology and increased competition are pushing down call costs.

œThere are conditions we have to abide by because we have two separate licenses. So there are conditions that we have to respect in terms of bundling our services, says Mobitel Lanka chief executive Suren Amarasekera.

œBut I’m sure a time will come when we can offer freedom from a group perspective.

Tempting Sri Lanka’s eight million cellular phone owners to use more hi-tech services like video calls and internet access on mobiles has been challenge for the industry which is struggling to maintain profit margins due to falling tariffs.

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